While it acknowledges the EU’s defence policy “cannot develop without a marked increase in the Union’s military capabilities”, the report by Portuguese MEP Luís Queiró states that “this does not necessarily mean that new structures must be created and more financial resources made available”.

“There is no reason why European defence spending should match [America’s as] European policy wishes to complement and not to rival that of the US.”

Queiró, a member of the Union for a Europe of Nations group, adds: “Europe does not have the same needs and does not need to maintain an arsenal of several thousand nuclear warheads or set up an anti-missile defence system. Before spending more, Europe must make more efficient use of existing resources.”

His report was debated by the Parliament’s foreign affairs committee this week. It recommends that the intergovernmental conference, where member states’ representatives are negotiating on the proposed EU constitution, should address what Queiró calls the “excessively restrictive interpretation” of Article 296 of the EC treaty. This exempts the arms industry from the full rigours of competition law.

According to Queiró, the invocation of this clause by member states has led to the fragmentation of national markets and industries. While he recognizes that military equipment “is not a product like any other”, he argues that rules covering the industry need to be more flexible and that national laws on licensing arms sales need to be better coordinated to cut down on red-tape.